Administration

[Uke]

I'd certainly be interested to support financially a fans consortium but have no idea how to get it off the ground nor the time to do it. Let's say we can find 100 fans who can invest £100.000. £10m straight away - and I am sure that there are that many in the Reading area willing to consider it.

Is that how it is done? or is it better to have 1,000 fans each investing £10,000. It would be interesting to know.

Why not just add £100 to every match ticket and a £2000 to every season ticket?

It'd have roughly the same uptake - if not more

[melonhead]

From what I understand the club is making a loss of around £500,000 per month, which over a season is £6 million. t

we were losing 5 million a year before, when we had no highly paid players, and a very small squad.
we now have very highly paid players, and a big squad.

[P!ssed Off]

From what I understand the club is making a loss of around £500,000 per month, which over a season is £6 million. t

we were losing 5 million a year before, when we had no highly paid players, and a very small squad.
we now have very highly paid players, and a big squad.

Did we have parachute payments before?

[yappy]

If the loss was only £5mil a year we've probably bridged that gap today. I'd hazard a guess that the combined wages of Roberts, McAnuff, Leigertwood, Bridge, Gorkss and Taylor would be in the region of £100k a week= £5.2mil a season. On that basis I would assume the loss must be more than that.

[Reading4eva]

Well we need to see what could be done. If we can get the 51% somehow the club will be in a better state

[Hoop Blah]

If the loss was only £5mil a year we've probably bridged that gap today. I'd hazard a guess that the combined wages of Roberts, McAnuff, Leigertwood, Bridge, Gorkss and Taylor would be in the region of £100k a week= £5.2mil a season. On that basis I would assume the loss must be more than that.

Our revenue will be falling for next season as well though? Aren't the parachute payments front loaded for the first season, not to mention a dip in attendance and sponsorship as the Premier League and Championship winning seasons disappear into the distance.

[yappy]

http://www.theguardian.com/football/2014/feb/26/financial-fair-play-championship-clubs-threat-football-league

According to this the breakdown is:

relegated clubs are paid £23m in their first year in the Championship, £18m the following season and £9m in each of the two seasons after that.

so a £5mil windfall just to make up for in parachute payments!

[SCIAG]

So assuming a £6m operating loss and a £5m drop in parachute payments, this summer we need to find £11m of savings, or at least transfers in, before we start accounting for other losses of revenue.

As Pogrebnyak, Guthrie and Drenthe were all free transfers (correct me if I'm wrong about Drenthe), any fee for any of them would be "good". Even if we got nothing for Pogrebnyak, £500k for Drenthe and £1m for Guthrie, I think that would do the job, with today's non-renewals.

[melonhead]

If the loss was only £5mil a year we've probably bridged that gap today. I'd hazard a guess that the combined wages of Roberts, McAnuff, Leigertwood, Bridge, Gorkss and Taylor would be in the region of £100k a week= £5.2mil a season. On that basis I would assume the loss must be more than that.

i reckon the last time we were in the championship is a better comparison,due to antons arrival and injection of cash he didnt have

and that loss was 22 million i think, while playing players less than they are on now

[ZacNaloen]

We also had less money though

[melonhead]

thats ok then

[ZacNaloen]

Just pointing out something you didn't consider in your calculation mate

[SPARTA]

http://www.theguardian.com/football/2014/feb/26/financial-fair-play-championship-clubs-threat-football-league

According to this the breakdown is:

relegated clubs are paid £23m in their first year in the Championship, £18m the following season and £9m in each of the two seasons after that.

so a £5mil windfall just to make up for in parachute payments!

Assuming we haven't borrowed against these payments as has been rumoured on here by a few seemingly trustworthy people.

[ZacNaloen]

I can't believe we've borrowed 3 years worth of Parachute payments.


But that is the problem with the payments coming at the end of the season, it's after you need the money. You pretty much HAVE to take out a loan unless your owner has a spare 23 million. The whole thing is a racket to get clubs indebted to rich people, I'm convinced.

[Hoop Blah]

If the loss was only £5mil a year we've probably bridged that gap today. I'd hazard a guess that the combined wages of Roberts, McAnuff, Leigertwood, Bridge, Gorkss and Taylor would be in the region of £100k a week= £5.2mil a season. On that basis I would assume the loss must be more than that.

i reckon the last time we were in the championship is a better comparison,due to antons arrival and injection of cash he didnt have

and that loss was 22 million i think, while playing players less than they are on now

What loss was £22m? The revenue?

If so, not far wrong by the looks of it, but we went from £51.5m turnover in 2008 to £25.7m in 2009. The wage bill went down from £31.1m to £25.5m (when we were told there was something like a blanket 40% wage cut on the cards IIRC).

Last season revenue was £59.3m and wages £46m. Revenue when we went up was £14.8m so I think we could probably guesstimate a turnover for this year of a million or so over or under £40m.

[Hoop Blah]

I can't believe we've borrowed 3 years worth of Parachute payments.


But that is the problem with the payments coming at the end of the season, it's after you need the money. You pretty much HAVE to take out a loan unless your owner has a spare 23 million. The whole thing is a racket to get clubs indebted to rich people, I'm convinced.

It's a good point, perhaps they should be paid in installments to protect clubs from blowing it all upfront but also allowing them to manage their finances without resorting to borrowing upfront.

[melonhead]

Just pointing out something you didn't consider in your "calculation" mate

all i did was give some facts to help the people doing the calculations make a more accurate guess

[Ian Royal]

I can't believe we've borrowed 3 years worth of Parachute payments.


But that is the problem with the payments coming at the end of the season, it's after you need the money. You pretty much HAVE to take out a loan unless your owner has a spare 23 million. The whole thing is a racket to get clubs indebted to rich people, I'm convinced.

It's a good point, perhaps they should be paid in installments to protect clubs from blowing it all upfront but also allowing them to manage their finances without resorting to borrowing upfront.

I thought they were paid in installments already.

[ZacNaloen]

yeh, yearly ones.

[winchester_royal]

I think HB was being facetious.